Dow futures experienced a modest increase on Friday, positioning Wall Street to conclude the week positively, driven by robust earnings reports and a prevailing sense of optimism regarding potential trade agreements in light of the upcoming August deadline set by the Trump administration. Crude prices have experienced an upward trajectory, whereas Intel has provided disappointing guidance as the chipmaker aims to implement significant cost reductions.

Trade negotiations are currently a focal point as the week concludes with the U.S. formalizing new agreements with Japan, Indonesia, and the Philippines, thereby complementing earlier arrangements made with the U.K. and China. A European Commission spokesman indicated on Thursday that an agreement between the European Union and the U.S. regarding trade tariffs is “within reach”, as the August 1 deadline approaches, when U.S. President Donald Trump has threatened to impose a sweeping 30% levy on EU imports. According to a report, which references two diplomats, this agreement is expected to lead to a comprehensive tariff of 15% on goods imported from the EU into the United States. Furthermore, the United States is poised to initiate new trade discussions with China in the coming week, as reported by the Wall Street Journal on Friday, indicating that President Donald Trump is pursuing additional economic concessions from Beijing. In May and June, the United States and China reached an agreement to significantly reduce their trade tariffs on one another, culminating in the signing of a framework trade agreement. However, both parties are currently striving to secure a more substantial agreement, while the United States continues to uphold tariffs ranging from 30% to 50% on imports from China.

U.S. stock futures experienced a modest increase on Friday, indicating that Wall Street is poised for a successful week as investors respond favorably to a predominantly encouraging earnings season thus far. S&P 500 futures exhibited an increase of 45 points, representing a 0.1% rise. Similarly, Nasdaq 100 futures saw a gain of 10 points, also reflecting a 0.1% uptick, while Dow futures advanced by 20 points, marking a 0.1% increase. The principal indices on Wall Street are poised to conclude the week with positive returns, as the Dow Jones Industrial Average, a benchmark for blue-chip stocks, is anticipated to achieve nearly a 1% increase for the week. Similarly, the NASDAQ Composite, which is heavily weighted towards technology, is also on track for a similar gain, while the S&P 500 has experienced an approximate rise of 1.1% thus far this week. Nearly 83% of the 155 companies within the S&P 500 that have reported thus far have surpassed Wall Street’s forecasts, contributing to the achievement of new all-time intraday and closing highs for the latter two indices on Thursday. Recent trade agreements between the United States and its trading partners have contributed to the market reaching new peaks. Investors are now closely monitoring for any additional trade announcements ahead of the Trump administration’s August 1 tariff deadline. On Friday, market participants will have additional earnings reports to analyze, including those from HCA Holdings and Charter Communications. Additionally, durable goods orders for June will be released for examination, in anticipation of the upcoming Federal Reserve meeting next week.

On Thursday, a renewed confrontation emerged between Trump and Federal Reserve Chairman Jerome Powell, centering on the expenses associated with the renovations of the central bank’s Washington headquarters. The U.S. president visited Washington on Thursday and concentrated on construction costs, highlighting that the renovation budget had escalated from $2.7 billion to roughly $3.1 billion – a figure that Powell contested. However, it appears that Trump has shifted his stance on terminating Powell, at least for the time being. “To do so is a big move and I just don’t think it’s necessary,” Trump told reporters after his visit to the Fed’s headquarters, retracting recent criticisms that have been interpreted as a challenge to the autonomy of the Federal Reserve. During the brief press conference, the president reiterated his desire for lower interest rates on several occasions. This sentiment underpins his criticism of Powell, particularly as the Federal Reserve has halted its rate-cutting cycle amidst ongoing uncertainty regarding the inflationary effects of the Trump administration’s trade policies.

Intel’s shares experienced a significant decline in premarket trading following the chipmaker’s announcement late Thursday regarding anticipated losses that exceed Wall Street’s projections for the third quarter, alongside plans for workforce reductions. The company intends to decrease its workforce to 75,000 by the conclusion of the year, representing a 22% reduction from the end of 2024, achieved through attrition and “other means”. Additionally, as part of an effort to improve capital efficiency and reduce costs, Intel has announced that it has abandoned plans to develop projects in Germany and Poland. The company indicated that it would decelerate the construction timeline of its chip factory in Ohio “to ensure spending is aligned with market demand.” It appears that investors are expressing apprehension regarding the company’s prioritization of cost-cutting measures over the imperative of regaining its technological advantage in a highly competitive industry.

Oil prices experienced an increase on Friday, building on the significant gains from the prior session, buoyed by optimism surrounding potential U.S. trade agreements as President Donald Trump approaches a critical deadline. Brent futures experienced an increase of 0.9%, reaching $69.78 per barrel, while U.S. West Texas Intermediate crude futures also rose by 0.9%, settling at $66.61 per barrel. On Thursday, both contracts experienced an increase exceeding 1%, following the release of data indicating a significant reduction in U.S. crude inventories. The crude markets have found support due to the potential for increased trade agreements between the United States and its trading partners, particularly in light of the impending August 1 deadline for new tariffs on goods from various nations. The United States and Japan announced a trade agreement on Wednesday, and there is increasing confidence that the European Union is also progressing toward a similar arrangement. Reducing trade tensions enhances economic activity and international trade, subsequently leading to a rise in oil demand as a result of heightened transportation and industrial energy consumption.